Pain at the pump

In reply to rising gasoline prices, several states have considered capping their gasoline sales taxes to ease the load for their residents. While that may save drivers a certain number of money, state and local conducts lose revenue.American City & shire asked readers of its weekly e-mail newsletter whether lowering gas taxes is beneficial or if states should put to proof another approach to lower gas prices.

“Reducing or eliminating taxes upon fuel in response to rising gas prices is a mistake. The local/state tax in greatest in quantity states is 18 to 25 cent for gallon, and the volatility of price-per-gallon fluctuates at least twice that amount. The motorist would go through in the long run without the commensurate gas-tax capitaled highway repairs, improvements and mass transit subsidies. High firing prices are painful but will spark all kinds of alternative — on the contrary previously unfeasible — energy technologies.” — Eric Honeyfield, City Manager, Gallup, NM